University Hospitals to sell lab assets to Quest Diagnostics

Cleveland-based University Hospitals has signed a definitive agreement to sell some lab assets to Quest Diagnostics for improved efficiency and affordability of services.  

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“Laboratory testing is a critical and increasingly complex area of healthcare,” University Hospitals CEO Cliff Megerian, MD, said in an Aug. 21 news release. “We look forward to a collaboration with Quest that will maintain streamlined and efficient operations, quality and breadth of menu while enhancing access for our patients.”  

The transaction is expected to close in the fourth quarter, pending regulatory reviews. Financial terms of the deal were not disclosed.

Hospital lab acquisitions are a key growth opportunity for lab companies as more health systems consider selling their lab businesses or signing management agreements. Over the past year, several health systems have sold lab assets to Quest Diagnostics or Labcorp, including Philadelphia-based Jefferson Health, Minneapolis-based Allina Health and Boston-based Tufts Medicine. 

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